Pharma/Fine Chemicals Roundup – July 26
7:33 AM MDT | July 26, 2011 | By DEEPTI RAMESH
GENERICS DOMINATE API MARKET IN ASIA/PACIFIC
The generic sector dominates the active pharmaceutical ingredient (API) market in the Asia/Pacific region, and generic APIs accounted for 71.5% of the region’s API revenue in 2010, while innovator APIs accounted for 28.5%, says a recent report by GBI Research.
The Asia/Pacific region is the fastest growing API market in the world. Japan is the largest market for APIs in the region and the country contributed 42.8% of the region's total API market revenues, GBI says. China is the second largest and the fastest growing API market in the Asia/Pacific, and holds a share of 20.8% in the region's total API market revenues. India is the third largest API market in the region accounting for a share of 10.3% and Korea is another important API market accounting for 8.1% in the region's total API market revenues, GBI adds.
JOHNSON MATTHEY’S FINE CHEMICALS BUSINESS REPORTS GROWTH IN QUARTERLY SALES
Johnson Matthey says its Fine Chemicals division has recorded a 15% growth in sales in the first quarter of the fiscal year ended June 30, compared with the year-ago period, to £70 million ($115 million). The Fine Chemicals division has also recorded a good growth in operating profits, the company says. The active pharmaceutical ingredients (API) business of the division performed well with a particularly strong performance in North America driven by an improved market share, and the research chemicals business continues to make steady progress, Johnson Matthey says.
“Looking ahead, demand for the group's products and services remains robust. We currently anticipate that our good start to [the fiscal year] will be maintained throughout the year,” Johnson Matthey says.
PRIVATE EQUITY FIRM BUYS HALTERMANN FROM DOW
By Chemical Week Editorial Staff
HIG Europe (Hamburg), the European arm of private equity firm HIG Capital (Miami), has acquired Haltermann Products (Hamburg) from Dow Chemical. Haltermann has annual sales of about €150 million ($212 million) and produces hydrocarbon-based chemicals for the fine chemicals, pharmaceutical, automotive, coatings, cosmetics, electronics, graphic arts, and plastics processing markets. Dow continues to own custom manufacturing business Dow Haltermann Custom Processing.
JOHNSON & JOHNSON LAYS DOWN SUSTAINABILITY REQUIREMENTS FOR SUPPLIERS
By Alex Scott
Johnson & Johnson (J&J), the pharmaceuticals and personal care giant, has published a series of sustainability performance goals that include requirements for all of its “strategic” suppliers. The company’s sustainability requirements are some of the toughest imposed by any pharmaceutical company on its suppliers. The program has been introduced as one of the firm’s seven goals as part of its five-year, Healthy Future 2015 initiative.
J&J states in its Healthy Future 2015 roadmap that one of its priorities is to partner suppliers that embrace sustainability. Within this area one of the company’s goals is to establish sustainable procurement criteria and processes to catalyze improved supplier performance and diversity. The company plans to achieve this by requiring all of its strategic suppliers to have two or more publicly-reported sustainability goals. It also plans to spend $1 billion to diversify suppliers by 2011, and to increase its percentages of spending thereafter to promote sustainability.
PHARMA EXPORTS MAY FACE CHALLENGES FROM CHINA, RUSSIA
Business Standard, India
China’s massive expansion of its bulk drug industry and Russia’s move to achieve self-sufficiency in the pharmaceuticals sector are likely to pose challenges to the manifold export growth targets set out for Indian pharmaceutical exports by the commerce ministry if not adequately addressed, say officials.
The Chinese government early this year had announced a plan to invest $750 million to build capacities in pharmaceutical ingredients for supply to drug makers in other countries. This is aimed at creating capacities that can comply with the stringent quality standards being enforced in regulatory markets of America and Europe, where it has no presence. Bulk drugs (API) and intermediaries from China are already flooding Asian and Africa countries, including India.
The commerce ministry has announced an ambitious target of more than doubling the pharma exports to $25 billion from the current $10 billion by 2014. The three-year time line itself is an uphill task going by the current growth rate of between 10 and 15 per cent in pharma exports. Any further momentum is possible only with the increase in exports to all the major markets while introducing measures that enhance the competitiveness of Indian products.
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